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27 January 2022

After the crawl, what next?

In brief

  • To date, this year has presented a mixed bag of investment prospects, challenges, and opportunities for Ghana, influenced largely by the global pandemic’s impact on international markets
  • The local macroeconomic landscape is improving from the scourge of the pandemic as the fiscal deficit declined from 11.7% at the close of 2020, to 5.1% by the end of the 1H2021
  • However, the local market rally appears to be slowing to a stop as the liquidity tailwind that propelled it wanes
  • We expect the return of market volatility in significant and often confusing spells as investors price rate hikes by major central banks
  • An increase in market volatility presents buying opportunities for investors who are willing to take risk